Naked Short Selling Petition Status Report

Fellow Petitioners,

It has been some time since I have last updated you on the status of this petition.  I will now try to do so as best I can.

For starters, I want to thank all who have come here and signed on to our battle.  It is your signatures that are what makes this petition work.   It is also these signatures that have, in my opinion, created the SEC's Regulation SHO that was released in June and implemented this January.  Without your willingness to fight this battle we would never have seen any reforms at all and for that you should be proud.

Today is January 10, 2005 and today was to be the day we were all anticipating.  We all expected our investments to show up on the "threshold security" list that was created with Regulation SHO.  Instead we saw how low Wall Street and the regulators would go to lie, cheat, and steal to defraud us.

The NASDAQ "threshold security" list posted on the NASDAQ Web site was insulting.  Somehow the NSCC and/or the NASDAQ suddenly erased the fails that have abused our investments for all these years and eliminated our investments from the list of mandatory close-out securities.  Erased from the reported list were at least 350 securities that were reported to Wall Street only weeks earlier.

On December 13, 2004 the General Council at Bear Stearns informed members in a conference call that regulators had been voicing their concerns of short selling settlement failures and that broker-dealers, executing brokers, and clients had not been following established laws.  To address this issue the SEC created Regulation SHO.  Bear Stearns also identified at this time that the number of "would be threshold securities", as provided by the regulators, was a list of 1000+ companies.  It was that list that the NSCC and/or NASDAQ suddenly manipulated to erase 350 OTCBB and Pink Sheet companies on January 10, 2005.

The reported list out of the NASDAQ identified that while the OTCBB may be the "wild west" of trading platforms, and is made up of a compilation of scam companies according to the SEC, it is also the most efficient platform with regards to settling trades.  The percentage of OTCBB issuers that made the list, as representative of those eligible was far greater than any other trading exchange.  In fact, it was near perfect with only 28 of 3100 companies on the list.  It was also a fool's list.  The Pink Sheets had 100% of eligible companies on the list and the OTCBB had .89%.  Even the NYSE and NASDAQ could not get to .89% accuracy.  It was a fraudulent list provided by Wall Street attempting to manipulate shareholders out of their investments and into the hands of those needing to cover fails.

Now more than ever we need your support.  We need your efforts to seek out and bring in companies and investors to sign this petition.  We need new names to make our case heard.  We cannot have you sign multiple times, however as those signatures will not be counted and will be erased.  We need people to step out and voice their displease.

Today Wall Street was not the only ones who have defrauded us. Today the SRO's and regulators who police Wall Street also defrauded us.  They perjured themselves in a list that was inaccurate and manipulative.  We need to bring this to the public by congressional investigations and we can only get there with signatures.

Thank-you in advance for making our cause known


Dave Patch